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Payroll in times of hybrid working: 3 new challenges

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Hybrid work is hot. Companies realise that workplace (and worktime) flexibility has become an important differentiator in a tight labour market. Hybrid working, however, has a lot of implications for HR. For example, it greatly affects payroll delivery. We’ve summarised the key challenges (global) companies face on this front.

#1 Waterproof compliance procedures

Payroll compliance has never been easy, but it’s bound to get even more complex. We expect the introduction of new rules and regulations around working hours, expenses, benefits, taxes etc. to reflect the changes related to a hybrid working environment – and these can be imposed by everything from unions and federal governments to state/provincial or local authorities. Needless to say, this will make it even harder for you to manage your multi-country payroll. Having the right payroll expertise at hand was never more vital.

#2 Fast, simple and secure data sharing

Payroll professionals are part of the hybrid workforce, so they’ll need remote access to sensitive personnel data. For many companies, this implies making a radical switch from disparate, on-premise systems to cloud-based payroll platforms. In an HR area where deadlines are sacred, this is the only sustainable way to keep on sharing data safely. The problem: HR technology comes in many shapes and forms. How do you know what’s best for your (international) team? A proven, flexible solution seems to be a must.

#3 Crystal-clear reports

No way around it: a hybrid working environment puts visibility and transparency on the agenda. So, integrating core HR with payroll data – arguably the most reliable data in your organisation – should become standard practice. This provides insights into numerous business-critical matters. Where to hire new people? How to improve your absenteeism policy? Or when to promote people? With multi-country, comparative and consolidated payroll reporting, you play into needs of internal stakeholders who’ll want to stay on top of things in a hybrid working culture.

Payroll outsourcing hits all 3 objectives

The growing needs for waterproof compliance, proven HR software and accurate reporting all point in the same direction: payroll outsourcing. Teaming up with an experienced global payroll partner gives you peace of mind on all 3 fronts and allows you to spend more time on the human aspects of hybrid working. That’s not just us saying. A large-scale European survey by SD Worx shows that payroll has jumped from 8th to 3rd position on the list of HR domains that are most suitable for outsourcing. About 6 in 10 European companies count on a payroll partner to some degree.

Curious about the benefits of payroll outsourcing and how to choose a partner?

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